The Tennessean

Home values

Nashville-area home values have risen faster than the national average over the past year, but don’t expect that growth to continue in 2014, according to a new report released by Zillow.com, an online marketplace for homes.

In October, home values for the region were up 6.9 percent over October 2012; by comparison, national home values were up 5.2 percent over the same period.

However, over the next 12 months, Zillow projects that home values will remain flat in metro Nashville. Nationally, home values are expected to rise 2.7 percent, which is roughly half of the current pace.

Seven of the top 30 metro areas covered by Zillow are expected to see home values fall over the next year, with the biggest declines in St. Louis (down 1.5 percent), Philadelphia (down 0.9 percent) and New York (down 0.7 percent), according to the Zillow Home Value Forecast.

“The months-long period of annual home value appreciation rates in the 6 and 7 percent range was great while it lasted, but we knew it would not continue indefinitely. The slowdown we’ve seen these past few months was expected, and is largely welcome news for a market still struggling to find its natural balance,” said Stan Humphries, chief economist for Zillow. “The conditions that led to the robust appreciation experienced earlier this year, including historically low mortgage interest rates, high affordability, low inventory and high demand, are waning. In their place, we’re beginning to see more inventory and rising mortgage rates, which will lead to further normalization in the market going forward.”

Locally, only La Vergne, Thompson’s Station and White House should see home values grow by more than 1 percent over the next 12 months. Gallatin could see the biggest drop in home values, dropping 0.5 percent in the same time period.

By county, Williamson County is expected to see the strongest growth over the next 12 months, at 0.6 percent, while Hickman will see the biggest decline, at 0.7 percent.